Understanding Restrictive Covenants

Restrictive covenants are clauses in your employment contract that limit what you can do during and after employment—non-compete (can't work for a competitor), non-solicitation (can't recruit the company's employees or customers), and confidentiality (can't disclose or use the company's secrets). They can affect where you work next and what you can say or do. Here's what they usually mean and what to look for before you sign.

Non-compete

You agree not to work for a competitor or in a similar role for a period (e.g. 1–2 years) after you leave. Check: duration, geographic scope, and definition of "competitor." In some places non-competes are limited or unenforceable; the contract may still contain them. Push for shorter duration, narrower scope, and clearer definition—or get advice.

Non-solicitation

You agree not to recruit the company's employees or customers for a period after you leave. That's often more enforceable than a broad non-compete—and can still limit you if your next role involves hiring or business development. Check: how long it lasts, who it covers (employees, customers, or both), and whether it's limited to people you had contact with. Push for a short period and narrow scope if you can.

Confidentiality

You agree not to disclose or misuse the company's confidential information. That's standard—but check how "confidential" is defined and for how long. You need to be able to describe your role and skills when job-hunting; the clause shouldn't prevent that where the law allows. Push for a clear definition, exclusions (e.g. public info, your general skills), and a time limit. BeforeYouSign can highlight restrictive covenant language in your offer so you know what you're agreeing to—and what to push back on—before you sign.